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Fed's Barkin: No Rush to Cut Rates, Cannot Ignore Inflation Risks from Tariffs
Summary: According to Jinshi News, Federal Reserve's Barkin stated on Friday that due to the unresolved risk of new import tariffs potentially driving up inflation, and with the U.S. job market and consumer spending remaining strong, there is no rush to cut rates. In an interview with Reuters, Barkin pointed out, 'I don't think this data ...
According to Jinshi News, Federal Reserve's Barkin stated on Friday that due to the unresolved risk of new import tariffs potentially driving up inflation, and with the U.S. job market and consumer spending remaining strong, there is no rush to cut rates. In an interview with Reuters, Barkin pointed out, 'I don't think this data is going to make us rush to cut rates... I'm very aware that we haven't hit our inflation target in four years.'
Businesses in Barkin's region (Richmond) still expect prices to rise later this year with the implementation of new tariffs, and import tariffs may further increase in the coming months. Additionally, he mentioned that the unemployment rate remains low at 4.2%, and there doesn't seem to be signs of widespread layoffs by businesses, which could weaken another goal of the Fed to maintain maximum employment.
Considering the uncertain outcome of tariffs, Barkin stated, 'I have to say, the response we still need to make is to wait and see. Waiting is not hitting the brakes. It's just not hitting the gas pedal.'
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Link: Fed's Barkin: No Rush to Cut Rates, Cannot Ignore Inflation Risks from Tariffs [Copy]
